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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Carnival (CCL - Free Report) . CCL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.40, which compares to its industry's average of 18.87. CCL's Forward P/E has been as high as 1,798.77 and as low as -8,171.18, with a median of 29.28, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 2.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.27. Over the past year, CCL's P/B has been as high as 3.68 and as low as 1.55, with a median of 2.25.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCL has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.05.
Finally, we should also recognize that CCL has a P/CF ratio of 9.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CCL's P/CF compares to its industry's average P/CF of 20.69. CCL's P/CF has been as high as 26.20 and as low as -25.08, with a median of -4.44, all within the past year.
If you're looking for another solid Leisure and Recreation Services value stock, take a look at Six Flags Entertainment (SIX - Free Report) . SIX is a # 2 (Buy) stock with a Value score of A.
Six Flags Entertainment also has a P/B ratio of -2.33 compared to its industry's price-to-book ratio of 3.27. Over the past year, its P/B ratio has been as high as -1.74, as low as -2.66, with a median of -2.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Carnival and Six Flags Entertainment are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCL and SIX feels like a great value stock at the moment.
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Is Carnival (CCL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Carnival (CCL - Free Report) . CCL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.40, which compares to its industry's average of 18.87. CCL's Forward P/E has been as high as 1,798.77 and as low as -8,171.18, with a median of 29.28, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 2.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.27. Over the past year, CCL's P/B has been as high as 3.68 and as low as 1.55, with a median of 2.25.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCL has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.05.
Finally, we should also recognize that CCL has a P/CF ratio of 9.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CCL's P/CF compares to its industry's average P/CF of 20.69. CCL's P/CF has been as high as 26.20 and as low as -25.08, with a median of -4.44, all within the past year.
If you're looking for another solid Leisure and Recreation Services value stock, take a look at Six Flags Entertainment (SIX - Free Report) . SIX is a # 2 (Buy) stock with a Value score of A.
Six Flags Entertainment also has a P/B ratio of -2.33 compared to its industry's price-to-book ratio of 3.27. Over the past year, its P/B ratio has been as high as -1.74, as low as -2.66, with a median of -2.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Carnival and Six Flags Entertainment are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCL and SIX feels like a great value stock at the moment.